Defined-contribution plans are getting a bump. IRA savers are not.
The 2027 401(k) limits are here. See how much more you can save next year.
In short
Recent updates to retirement savings thresholds establish higher contribution caps for specific account types. Defined-contribution plans will receive an increase that permits participants to contribute more toward their retirement. However, the same relief is not being extended across the board, as IRA savers will not see any bump to their limits.
Key points
- Individuals utilizing defined-contribution plans can take advantage of expanded capacity…: Individuals utilizing defined-contribution plans can take advantage of expanded capacity to save more.
- Account holders depending solely on IRAs will not receive any increase next year.: Account holders depending solely on IRAs will not receive any increase next year.
- Retirement threshold adjustments for the upcoming period are not being applied equally ac…: Retirement threshold adjustments for the upcoming period are not being applied equally across accounts.